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Health Care Industry Developments Audit Risk Alert

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Description

Need to know the important issues affecting the health care industry and how the current economic crisis affects this industry? This Audit Risk Alert focuses on emerging practice issues and current accounting and auditing developments.

Auditing in this challenging economic environment requires continually evaluating the importance of long-standing auditing standards directed at areas such as auditing fair value measurements, auditing accounting estimates, using the work of a specialist, going concern, and fraud—all of which get a fresh look in this alert. The current economic woes are stress testing the standards applicable to those areas and the critical thinking required to successfully apply them during the engagement.

The targeted discussions of recent economic, industry, technical, regulatory, and professional developments that may affect your audits will invigorate the audit team's brainstorming sessions required under AU sections 314 and 316 within the GAAS standards. Auditors, financial statement preparers, and management will find these same discussions helpful in identifying the significant risks that may result in the material misstatement of financial statements.

New accounting and auditing pronouncements and exposure drafts that are particularly significant to this alert and covered in just the right amount of detail include:

  • SFAS No. 167, Amendments to FASB Interpretation No. 46(R)
  • SFAS No. 166, Accounting for Transfers of Financial Assets—an amendment of FASB Statement No. 140
  • SFAS No. 165, Subsequent Events, which is codified at FASB ASC 855, Subsequent Events
  • SFAS No. 164, Not-for-Profit Entities: Mergers and Acquisitions—Including an amendment of FASB Statement No. 142
  • Multiple new FSPs related to fair value measurements and impairments
  • SAS No. 115, Communicating Internal Control Related Matters Identified in an Audit

This alert also includes information on emerging issues such as:

  • The FASB Accounting Standards Codification
  • Centers for Medicare and Medicaid Services developments
  • Convergence with International Financial Reporting Standards
  • The ASB's Clarity Project including convergence with international auditing standards

Table of Contents

  • How This Alert Helps You
  • Audit Risk
  • Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement
  • Economic and Industry Developments
    • The Current Economic Crisis
    • Government Intervention to Curtail the Economic Crisis
    • Industry Trends and Conditions
  • Legislative and Regulatory Developments
    • Uniform Prudent Management of Institutional Funds Act
    • Centers for Medicare and Medicaid Services Activity
    • Municipal Securities Rulemaking Board Activity
    • IRS Activity
    • "Red Flags" Rule
  • Audit and Attestation Issues and Developments
    • Audit Risks Arising From Current Economic Conditions
    • Liquidity Considerations
    • Alternative Investments
    • Auditing Fair Value Measurements
    • Auditing Accounting Estimates
    • Using the Work of a Specialist
    • Consideration of an Entity's Ability to Continue as a Going Concern
    • Consideration of Fraud in a Financial Statement Audit
    • Evaluating the Existence of Assets
    • Communication With Those Charged With Governance
    • Communicating Internal Control Related Matters Identified in an Audit
    • Withdrawal of GAAP Hierarchy From Auditing Standards
  • Accounting Issues and Developments
    • Not-for-Profit Entities: Mergers and Acquisitions
    • FASB Statement No. 168
    • FASB ASC
    • Consolidation of Variable Interest Entities
    • Accounting for Transfers of Financial Assets
    • Subsequent Events
    • FASB Interpretation No. 48
    • Fair Value
    • Other-Than-Temporary Impairment
    • NFP Consolidations and Equity Method Guidance
    • Accounting for Losses Due to Fraud
    • Liquidity Restrictions
    • Recently Issued GASB Pronouncements and Related Guidance
    • Tax Exempt Bonds—Accounting and Auditing Considerations in the Current Environment
    • Convergence With IFRSs
  • Recent Pronouncements
    • Recent Auditing and Attestation Pronouncements and Related Guidance
    • Recent Accounting Pronouncements and Related Guidance
  • Recent AICPA Independence and Ethics Pronouncements
    • On the Horizon
    • Overhaul Project—AICPA Audit and Accounting Guide Health Care Entities
    • Auditing and Attestation Pipeline—Nonissuers
    • Auditing and Attestation Pipeline—Issuers
    • Accounting Pipeline
  • Resource Central
    • Publications
    • AICPA reSOURCE: Accounting and Auditing Literature
    • CPE
    • Webcasts
    • Member Service Center
    • Hotlines
    • Industry Conference
    • AICPA GAQC
    • The CAQ
    • AICPA Industry Expert Panel—Health Care
    • Industry Web Sites
  • Appendix—Additional Web Resources

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Excerpts

How This Alert Helps You

   .01 This Audit Risk Alert (alert) helps you plan and perform your health care industry audits and also can be used by an entity's internal management to address areas of audit concern. This alert provides information to assist you in achieving a more robust understanding of the business, economic, and regulatory environments in which your clients operate. This alert is an important tool to help you identify the significant risks that may result in the material misstatement of financial statements and delivers information about emerging practice issues and current accounting, auditing, and regulatory developments. You should refer to the full text of accounting and auditing pronouncements as well as the full text of any rules or publications that are discussed in this alert.

   .02 Certain accounting guidance referenced in this alert has been codified into the Financial Accounting Standards Board (FASB) Accounting Standards Codification™ (ASC). On June 30, 2009, FASB issued FASB Statement No. 168, The FASB Accounting Standards Codification™ and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162. On the effective date of this statement, FASB ASC became the source of authoritative U.S. accounting and reporting standards for nongovernmental entities, in addition to guidance issued by the Securities and Exchange Commission (SEC). At that time, FASB ASC superseded all then-existing, non-SEC accounting and reporting standards for nongovernmental entities. Once effective, all other nongrandfathered, non-SEC accounting literature not included in FASB ASC became nonauthoritative. See the discussion of FASB ASC in the "Accounting Issues and Developments" section of this alert.

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Paperback 2009
Product# 0223409
Availability:In Stock
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